John Paul shows his price action trading setup with the BarTimer and ATR. You can’t trade the markets the markets are slow compared to when they are fast. For example, he prefers larger stops when the market is fast to avoid getting stopped out prematurely. In many cases, overnight trading leads to choppy back and forth movement, which is very difficult to trade. See an example at about 7:30 in the video. This choppy activity usually corresponds to the ATR. If the ATR value is too low, it’s not worth trading. You’re better off waiting for the market to wake up as seen around the 11:00 mark.
Starting around 11:20, you can learn how to trade news events. It’s better to stay out while the market is chaotic for five or 10 minutes and then re-enter when the volatility subsides.
At 13:00, take a look at the Atlas Line orders for the day. Besides the long and short order signals, there is a bias. When price is above the line, look for buying (long) opportunities. The opposite is true when price plots below the Atlas Line. At 20 minutes in, John Paul shows how the Atlas Line can be used for overnight trading (by adding another Atlas Line). You can set the MarketOpen parameter to begin at the time the desired market opens (e.g. “300” for 3:00 a.m. Euro (6E) market open for trading in the US/Eastern time zone).
Tune in at 27:00 for the ABC method. On Feb. 24, 2014, the C part of the day offered a breakout entry opportunity to the short side. Multiple ABC trading days are discussed along with the basics of price action.